Considering switching to an online bank like Ally? Explore the benefits here! Are there more perks to managing your money online? Discover why Ally may be the right choice for you. #onlinebanking #Ally #benefits #moneymanagement
Why Choose an Online Bank like Ally:
– Convenience of banking from anywhere
– Higher interest rates on savings accounts
– Lower fees compared to traditional banks
– User-friendly digital tools for easy money management
Are There More Benefits to Switching to Ally?
By making the switch to an online bank like Ally, you can enjoy a range of benefits that enhance your overall banking experience. From convenient mobile banking options to competitive interest rates, here are some of the advantages you can expect:
Convenient Banking Anytime, Anywhere:
With Ally’s online platform, you have the flexibility to manage your finances on the go. Whether you’re traveling, at work, or simply relaxing at home, you can access your accounts 24/7 and perform various transactions with ease.
Higher Interest Rates:
Ally offers competitive rates on its savings accounts, allowing you to earn more on your deposits compared to traditional brick-and-mortar banks. This can help your money grow faster and reach your financial goals sooner.
Lower Fees:
Online banks like Ally typically have lower fees for services such as ATM withdrawals, overdrafts, and account maintenance. By minimizing these costs, you can save more money and maximize your overall financial resources.
Easy Money Management Tools:
Ally provides user-friendly digital tools and resources that make it simple to track your spending, set savings goals, and monitor your financial progress. From budgeting apps to personalized insights, these features can help you make informed decisions and stay on top of your finances.
In conclusion, switching to an online bank like Ally can offer you a range of benefits that enhance your banking experience. From the convenience of digital banking to competitive interest rates and low fees, Ally can help you manage your money effectively and achieve your financial goals. Consider making the switch today to enjoy these advantages and more! #bankingbenefits #finance #moneygoals
They have higher interest in savings. So yes much better.Â
You can open an Ally account whenever you want. Try it out for a while before making it your primary account. You can (and should) have more than one bank account open.
Online banks often have lower fees and better interest rates, but the main disadvantage is there is no branch to go into for assistance.
One issue with online banks (like Ally) is that you need another bank for cash deposits. Will likely not matter to most people, but just something to consider.
You could always just give a friend cash and have them write a check or transfer the money to you electronically if you need to deposit cash at an online bank. Or just spend the cash.
Personally, I do both: I keep a local physical branch bank account for when I need to use local banking services (like cashiers checks, depositing cash). Then my savings is in an online bank.
If you only have 1 bank account, you are more vulnerable to not having access to your funds (e.g. if the bank has issues or closes your account).
Be careful with Ally and other online banks. My brother hasn’t been able to get his money out of Ally for 2 years. They keep refusing his id, he called customer service multiple times, they are still “sorting it out”. He can’t even transfer his money. They have locked his account.
I think the sweet spot is keeping your savings in a high yield account (at an online bank) and your checking, including at least one-months’ worth of liquidity, in a brick-and-mortar bank that you have easy access to. There are still times where you will want a brick-and-mortar bank (cash deposits, cashier’s checks, notary and endorsement guaranty services, larger wire xfers, etc.). All things being equal, I prefer having savings at a local bank, as well, if you can find a rate that equals the online bank. There is certainly a benefit to having a local banker at a community bank, especially if you are a business owner or have any plans of starting your own business.
The non-online banks have their benefits. Biggest ones imo are that it’s possible to deposit cash thru their ATMs / in branch or get a cashiers check the same day.
I think the best solution is to find a traditional bank with no fees and keep the account active in case you need those services. Or if you can’t get a free account, have whatever the direct deposit requirement is to get fees waived deposited to that account and setup automatic recurring transfers to the online bank.
Id also recommend keeping that credit card open and using it once a month or so, especially if it’s your oldest/first card. It’ll still help build credit even when it’s barely been used.
You need both, IMO. We use Ally for our longer-term savings and emergency fund, and a national bank for our checking/monthly expenses. At this point I’ve been to a teller maybe 5 times in the last 10 years, but having an ATM close, is useful.
I get where people are coming from about keeping multiple bank accounts but I’ve been strictly using ally since like 2017 and have not had a problem. Just a different view of the coin.
Regardless of what you think, you need to have at least two banks. One for your primary, and a second with some cash for emergencies. All it takes is a single fraud issue (fake check, sketchy ACH transaction, etc) to lockdown your main accounts for days to months while the bank investigates. During that time, you will have zero access to anything in those accounts
Opening an online bank account in addition to my Chase account significantly improved my finances. I use my Chase account for recurring bills (mortgage, Hulu, car insurance, etc.) and my SoFi account to house my savings and my flexible checking account (groceries, gas, fun stuff, etc.)
I like having a brick-and-mortar option in case I need it, but I 1000% prefer the day-to-day experience of using SoFi.
The only real advantage I can see to online banks is for a high yield savings account. Online banks are multiples higher in hysa apy.
Don’t cancel the Chase, just stop using it. Closing it can cause a credit score hit. I have an Ally savings account as their rate is higher than most traditional banks, but I would recommend a credit union.
As several have said, it’s useful to have a brick-and-mortar bank for things like cash deposits and other better-in-person things. Even if you end up going with an online bank I would check out your local credit unions to see if any of them will work for your purposes. CUs are nonprofit and tend to have better rates, fees, and customer service. And many of them let you use other CUs’ ATMs without a fee, or refund ATM fees outright. The flip side is that they are smaller and much more local often enough, so there’s more variability in the level of service and sometimes less sophisticated online banking (although I bank with three CUs and only one has an online banking experience that I really find lacking). You usually have to park a small amount of money (literally just $5 or so) in a savings account as well.
I’ve been with ally for 10 years and I have never had an issue. Always pays competitive interest rates. They now have a way to organize savings into groups for specific goals. I highly recommend it. I also recommend to find a local credit union and have an account with them too. One with no fees. Doing that makes it easier when you need to deposit cash and for better rates when financing a car or house loan. But the rest of my money goes into ally for the interest.
I did the same thing as you are wanting to do. I strongly suggest that you open your Ally high yield savings account with a small deposit (like $1,000). I tried moving over a much larger sum from my Chase savings, and Ally kept rejecting my application. When I tried a fourth time with just a small amount, it was accepted right away. I am guessing it had to do with validation of money not coming from illegal activity. Anyway, once the account was established, I had no problems then moving the rest over… it was just that initial amount that was problematic.
Try to get ally on the phone to help you set up – I literally couldn’t get through to anyone so I made a Marcus account instead
I opened both a credit union account and ally account, and closed my Chase account, in 2016 and it has been great. I have the accounts linked and can easily transfer money between the 2 using ach within a couple of days. Still having a local branch to go to for some things is nice (like getting a variety of denominations of money or depositing cash after selling a vehicle).